Currently, many magnetic credit or debit cards are updated to have the ability to conduct financial transactions using multiple interfaces such as a contact chip and/or contactless (wireless) RF chip interface, in addition to the magnetic strip interface. This provides for ease of use and also decreases transaction times at merchant locations.
In the case of the contactless interface, a RF (Radio Frequency) integrated circuit is coupled to an antenna and is present on a payment device such as a credit, debit, prepaid card, cellular telephone or personal digital assistant (PDA). It transmits information stored in the card to a card terminal adapted to receive the radio frequency signal. This can only be done in short range distances and occurs when a user brings their card in proximity to the terminal. The card transfers information to the terminal which, in turn, communicates with a payment processing network in order complete the transaction. In addition, the terminal may send updates to the IC chip on the card upon completion of a transaction.
However, despite ease of use, there are some security concerns associated with the contactless cards and wireless transactions. For example, when the card is initially sent to the user in an envelope (or similar situation) the information stored on the card may be skimmed or intercepted by fraudsters through the envelope. Some security measures have been implemented to reduce the chance of unauthorized interception of the data on the RF chips when they are sent to the user. For example, an issuer may use an RF shield to shield a contactless card when it is delivered to the user in the mail. The shield may be directly applied to the card, such as with a metallic sticker, or may be formed on the inner surface of the envelope itself. This prevents the RF chip in the card from communicating with an external device when it is sent to the user in an envelope. However, these shielding techniques add additional cost to the card for the provider and may not be completely effective, especially if the card is intercepted in transit and the shield is removed.
In addition to this problem, a user or issuer may want to use the contactless element of the credit, debit, or prepaid card at certain times after the card is received by the user. For example, when the user is traveling or in a high density area, they may want to disable the wireless communication of their card for their protection. In addition, some users may prefer to have the contactless interface always turned off, preferring only to perform the conventional contact transaction.
Embodiments of the invention address these and other problems, individually and collectively.